Elsewedy Electric (SWDY.

CA) - The leading Wires & Cables and Integrated Energy Solutions Provider in
the Middle East and Africa

Elsewedy Electric Company SAE (Elsewedy) is engaged in the production of integrated cables, electrical
products and renewable energy services. Founded in 1938 in New Cairo, Egypt, the company is still
headquartered in Egypt but operates across Northern Africa, Eastern Africa, the Middle East, and
Southern Europe. The company has 30 manufacturing facilities located in 15 countries, and it
successfully exports its products to more than 110 countries around the world. The company was
formerly known as El Sewedy Cables.

The company is a major contributor to the economic growth in Egypt. What began as a family business
trading in electrical equipment has evolved to become a well-established group with extensive holdings.
The company changed its name in 2010 to Elsewedy Electric to reflect its development over the years
and demonstrate its diversification into energy products and services.

Its success comes from its ability to provide customers with a one-stop solution in terms of Designing,
Engineering, Procurement, and Construction in the energy sector. Accordingly, the company has become
“a global leader in cables manufacturing, [and] a Middle East and Africa regional leader (MEA region) in
terms of energy solutions and its related services.”

Together with its 37 subsidiaries, Elsewedy provides energy solutions to various sectors worldwide by
operating in 7 diversified energy segments;

• Cables & Accessories: Including power and special cables as well as winding wires.
• Electrical Products: Cable accessories and fiberglass poles.
• Energy Measurement & Management: Meter and systems divisions as well as energy efficiency
and reduction division.
• Transformers: Manufacture of power, cast resin, and oil distribution transformers.
• Communications: Including copper telecom accessories and cables.
• Wind Energy Generation: Manufactures blades, wind towers, and wind turbines.
• Projects & Development: Which offers design, engineering, construction and installation
services.

These 7 segments consolidate into the three main business lines from which it generates profits:

• Wires and cables, accounting for 69% of the group’s gross profit
• Electrical products, which contributes 16%
• And delivery, transmission and distribution, the firm’s fastest-growing sector contributing the
last 15%

Elsewedy ascribes its successful growth rate to its company expansion strategy. The strategy included
the acquisition of 3W Networks and a total 90% stake in M. Torres Olvega Industrial. Recently the
company also established Siag Elsewedy Towers (a joint venture with SIAG), Doha Cables, and Elsewedy
Electric Nigeria Ltd. (two new companies). These moves demonstrate significant regional expansion and
the addition of a substantial number of new income channels.

In 2015, German industrial giant Siemens, partnered with Elsewedy Electric and another local business,
Orascom Construction, to expand Egypt’s power generation capacity by 45 percent and build three
power plants. The plants–Beni Suef, Burullus and New Capital–supply “enough electricity for 45 million
people and enable Egypt to achieve USD1.3 billion in fuel savings on an annual basis.” The agreement
was significant financially for Elsewedy to the tune of €2bn and created a major increase in sales as well
as a weighty alliance with such a large multinational corporation.

During 2016, Elsewedy made a product and geographical expansion into smart meter sales in the Gulf
and European markets. This smart move was in direct market response to the high demand for smart
meters in these regions.

More recently in 2017, Elsewedy Electric announced an understanding between Marubeni Corporation
with the Government of Egypt to develop a new wind power plant in Gulf of Suez as part of a Build, Own
and Operate project. The power plant has a capacity of approximately 500MW. Moving so successfully
into the sustainable energy sector has opened new markets for Elsewedy to enter, and the business line
complements the strong position the company holds through its cable and electrical product provision.

In line with its commitment to meeting the demand for renewable energy the company has integrated
an increased awareness for the environment and health and safety as part of its core Continuous
Improvement objective. As such, Elsewedy has “laid down all necessary precautions to help reduce
work-environment pollution such as, noise, gas emissions and liquid pollutants that may be a result from
[its] production processes.”

Just as noteworthy is the rest of Elsewedy’s company philosophy which places great value on innovation
and continuous improvement, as well as uncompromising quality. It believes that “Human capital is [its]
greatest asset.” Ahmed A. El Sewedy, President and CEO of the company, goes on to be more specific,
citing Elsewedy’s success to the “professionals who share their background, experience and expertise in
a skilled, but homogenous group working always very hard to meet customer needs and to exceed
market expectations.”

Elsewedy has developed prosperously in such a competitive marketplace by “staying ahead of the
competition.” El Sewedy, the CEO, has made it his “top priority” to transform “El Sewedy Cables into an
adaptive organisation with the inbuilt ability to constantly renew itself and respond intelligently to an
ever-changing environment”—a firmly effective path if history has anything to demonstrate.
Accordingly, the future only continues to look strong for Elsewedy.

Elsewedy Electric

Brief introduction to the story:

1. Hook

2. Business description

Brief info on when company was found and what are the services and products

8 segments not 7

Owing to a successful growth rate year after year and aligning with the expansion strategy of the
company, by operating in 8 diversified energy segments; Cables & Accessories, Electrical Products,
Energy Measurement &Management, Transformers, Communications, Wind Energy Generation, Solar
Energy Solutions, Projects & Development

3. Company history

Even during lean economic times, Elsewedy Electric has been able to maximize its commitment to
improve efficiency by ensuring that its management possesses the expertise and talent necessary for
the most critical business needs and has thus succeeded in maintaining a solid financial position.

Date Event

1938 Elsewedy family started its business as a trader in electrical equipment

1960 Turned into a distributor for the only cables manufacturer at that time

1984 Set up Arab Cables, Egypt's first private sector cables factory

1996 Established its second cables factory, Egytech Cables and its first plant for producing PVC
compounds, Egyplast

1997 Established United Industries, for the production of special cables, fiberglass poles and telecom
solutions. Set up Elastimold Egypt, a joint venture with ELastimold-Thomas & Betts

1998 Established United Metals, its first factory for copper rods, established SEDCO, for cable
accessories

2002 First Factory Outside Egypt, Giad Elsewedy Cables in partnership with Giad-Sudan

2003 Established Sudatraf-Transformers & cables accessories

2004 Established Italsmea Elsewedy, joint venture with Italsmea Italy

2005 Established Elsewedy Cables Syria

2006 Established Elsewedy Electric Ghana

2007 Established Elsewedy Electric Syria and United Wires

2008 Established Elsewedy Cables Algeria, established Elsewedy Electric Zambia, acquired ECMEI,
acquired Iskraemeco, acquired 30% stake in M.Torres Olvega Industrial, allowing Elsewedy Electric to
establish SWEG (Elsewedy for Wind Energy Generation – a company 100% owned by Elsewedy Electric

2009 Established Elsewedy Cables KSA, established Elsewedy Cables Ethiopia, established Elsewedy
Cables Yemen, established Elsewedy Transformers Egypt

2010 Changed the company name to Elsewedy Electric from Elsewedy Cables. Acquired 90% stake in
M.Torres Olvega Industrial, established Siag Elsewedy Towers (SET), a joint venture with SIAG,
established Doha Cables, established Elsewedy Electric Nigeria, acquired 3W Networks.

2011 Aamal Company’s subsidiary – Doha Cables awarded contract worth US$494m to supply power
cables to Qatar General Electricity & Water Corporation over an initial 2 year period.
2012 El Sewedy Electric’s subsidiary, Egytech, awarded tender by the Ministry of Electricity and Water
- State of Kuwait to supply and install high voltage cables, valued at US$59m (at EGP6/US$:
EGP356Million). El Sewedy Electric signed a contract in Iraq for the supply of medium voltage cables for
US$56m.

2015 Elsewedy Electric (EGX: SWDY.CA on the Egyptian stock exchange) signed a €2bn contract in a
consortium with SIEMENS AG for the government of Egypt to build a new combined cycle power plant in
Beni Suef on EPC (Engineering, procurement, and construction)

2016 Elsewedy Electric (SWDY.CA) signed an EPC contract with the Egyptian Transmission Company
(EETC) for an overhead transmission line with value of US$190m. Board approved share buyback,
executed for 5.0 million shares at the price of EGP62.5/share.

2017 Subsidiary, Elsewedy Power signed a supply contract with Compagnie Energie Electrique du
Togo to supply 300K prepaid meters with a contract value of €44m. Subsidiary Elsewedy Electric for
Trade and Distribution has signed a contract with the Egypt New Urban Communities Authority for the
construction of a new power substation valued at US$79m (EGP6/US$: EGP477m).

2018 Elsewedy Electric for Trade and Distribution signed an engineering, procurement, and
construction (EPC) contract on a turnkey basis for the New Capital 500 kV substation. The contract is
valued at US$205m (EGP6/US$: EGP1,238m). Its 99.98% owned subsidiary Egytech Cables has signed a
contract with the Egyptian Electricity Transmission Company to supply and install high-voltage, 220 KV
electrical cables as well as fibre optic cables to connect the Zahraa Al Maadi Transmission Sub Station
with the national grid on a turnkey basis. The contract is valued at US$71m (EGP6/US$: EGP430m).

4. Characters development

Ahmed El Sewedy, following a long line of family managers, is President and Chief Executive Officer. He
took the lead of the family business in 1986. His main asset at the time was Arab Cables Co., first private
cable factory in Egypt. He has turned the company into one of the largest worldwide-providers of
integrated energy solutions with more than thirty production facilities in sixteen countries with more
than 14,000 professionals. The company now exports a wide range of products to more than 110
countries around the world (Africa, Middle East, Europe and the Far East). During his years of leadership,
Ahmed increased the value of the business almost a hundred times with the company most recently
having a market capitalization of US$1.5bn.

The company grew rapidly under Ahmed’s leadership with a focus on streamlining operations, acquiring
new businesses, penetrating new markets and ensuring that each business was one of the best in its
field.

Some of its main competitors are: Egypt Cable Co., Egyptian German Electrical Manufacturing Co., and
Egyptian Plastic and Electrical Industries Co.